A.  This year Bob sells 5 houses for a total of $3.37 million dollars.  He earns a 5.61% commission.  All of these houses had been previously lived in.  As a result of these transactions, GDP will increase by how much?  Enter a numerical value rounded to two decimal places as necessary.  B.  A farmer grows wheat and sells it to the miller for $1.14. The miller turns the wheat into flour and sells it to the baker for $2.62. The baker turns the flour into bread and sells it to consumers for $4.86. As a result of these transactions, GDP will increase by how much? Enter a number rounded to two decimal places.

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Asked Sep 30, 2019
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A.  This year Bob sells 5 houses for a total of $3.37 million dollars.  He earns a 5.61% commission.  All of these houses had been previously lived in.  As a result of these transactions, GDP will increase by how much?  Enter a numerical value rounded to two decimal places as necessary. 

 

B.  A farmer grows wheat and sells it to the miller for $1.14. The miller turns the wheat into flour and sells it to the baker for $2.62. The baker turns the flour into bread and sells it to consumers for $4.86. As a result of these transactions, GDP will increase by how much? Enter a number rounded to two decimal places.

 

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Expert Answer

Step 1

GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and services during a specific period of time.

Step 2

A. This year Bob sells 5 houses for a total of $3.37 million and earns a commission of 5.61%, as the houses are not new their value is already added in the GDP in which they were constructed.

The val...

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Value addition to GDP Bob's Commission $3370000x.61 100 -$189,057 Therefore, the GDP will increase by $189,057

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